Advisors are broadening portfolios beyond U.S. equities, with many now considering a more balanced fixed income allocation. 

Macroeconomic pressures, particularly uncertainty around the Federal Reserve’s next rate move, make diversification across bond sectors especially timely. Regardless of when rates shift, different areas of fixed income are likely to react in varied ways, underscoring the value of spreading exposure.

The American Century Multisector Income ETF (MUSI) offers an example of this approach, combining investment-grade and high-yield bonds, mortgage-backed securities, emerging market debt, and more. 

Finsum: Actively managed funds can adjust sector weightings to capitalize on opportunities while reducing reliance on any single bond segment.